Bharathiar University 2007 Bachelor of Computer Science (B Level) BCS Financial Accounting BCS301 - Question Paper

(a) Closing stock is Rs. 7,500.
(b) Depreciation 5% on cycles, 10% on car, 10% on plant and machinery
(c) Rs. 500 to be written off as bad debts.
(d) New provision for bad and doubtful debts is to be at 5% on debtors.
(e) Insurance prepaid Rs. 50.
(f) Outstanding expense – Interest Rs. 50, salaries
Rs. 500.
(g) Outstanding income – Interest Rs. 110.
(h) On first July 1991, Kuppuswamy introduced additional capital of Rs. 15,000. Capital carries interest at
5% p.a.
Prepare final accounts in the books of Kuppuswamy for the year ended 31.12.2001.
10. From the subsequent Receipts and Payments account of the Chennai Club for the year wended 31st March 1998, prepare Income and Expenditure account.
Receipts and Payments A/C for the year ended 31-03-1998.
Receipts Rs. Payments Rs.
To Balance (1.4.97) 3,485 By Books 6,150
To Entrance Fee 650 By Printing and Stationery 465
To Donations 6,000 By Newspapers 1,110
To Subscriptions 6,865 By Sports Materials 5,000
To Interest on Investment 1,900 By Repairs 650
To Sale of furniture 685 By Investments 2,000
To Sale of old news papers 465 By Furniture 1,000
To Proceeds from entertainment 865 By Salary 1,500
To Sundry Receipts 125 By Balance on 31.3.98 3,165
21,040 21,040
The entrance fee and donations are to be capitalized; Sports materials are valued at Rs.4,000/- as on 31.3.1998.
11. Ram, for the mutual accommodation of himself and Sankar, draws upon the latter a bill of exchange at three months date for Rs. 10,000. The bill is discounted by Ram at 12 per cent and half the proceeds are remitted to Sankar.
Sankar, at the identical time, draws a bill of exchange at
3 months on Ram for Rs. 5,000. After securing Ram's acceptance the bill is discounted at 12 per cent by Sankar who remits half the proceeds to Ram. Sankar becomes bankrupt before the date of his acceptance and Ram receives 1st and final dividend of 40 per cent in the rupee in full satisfaction.
Write up the Journal and Ledger entries in the books of both the parties.
12. What is a joint venture? explain the methods by which the profit is ascertained.
13. From the subsequent particulars extracted from the books of a trader kept under the Single Entry System, you are needed to obtain out the figures for credit sales and credit purchases by showing the Total Debtors Account and Total Creditors Account.

Rs. Rs.
Balance, first January, 1988 ;
Total Debtors 57,200 Payments made against
Bills Receivable 4,000 Bills Payable 7,000
Total Creditors 26,400 Bills receivable
Bills Payable 2,500 dishonored 1,100
Cash paid to creditors 70,250 Bad debts previously
Discount allowed by suppliers 2,650 written off, now recovered 1,000
Cash received from customers 1,35,400 Cash Sales during the year 15,800
Discount allowed
to customers
4,200 Cash purchases
during the year
12,300
Returns from customers 1,625 Total debtors on 31-12-88 55,600
Returns to suppliers 1,330 Total creditors on 31-12-88 28,400
Bad debts written off 3,540 Bills receivable on 31-12-88 1,000
Cash received against bills Bills payable on 31-12-88 3,000
receivable 14,200
14. A Lease is purchased on first January, 1999, for a term of
5 years by payment of Rs. 40,000. It is proposed to depreciate the lease by the annuity method charging five per cent interest.
If annuity of Re. one for five years at 5% is 0.230975, show the Lease Account for the full period.
15. From the subsequent particulars extracted from the books of M/S Balu Ltd., which keeps accounts on self–balancing system, prepare the General Ledger Adjustment A/C as would appear in the Sales Ledger and Bought Ledger respectively.
Rs. Rs.
Debtors as on 1.1.1996 45,750 Acceptance received from debtors 8,500
Creditors as on 1.1.1996 54,900 Acceptance provided to creditors 12,000
Transactions for the year : B/R dishonoured 1,200
Credit purchases 20,500 B/P dishonoured 3,000
Credit sales 22,700 Bad debts written off 2,500
Return inwards 400 Sundry charges debited
Return outwards 600 to customers 350
Cash received from customers
25,500 Allowances from
creditors
280
Discount allowed 450
Cash paid to suppliers 30,700
Discount received 670

Earning:   Approval pending.